[Moseley]

Read the full article at FAIRFAX FREE CITIZEN

http://fairfaxfreecitizen.com/2014/11/12/new-republican-majority/?utm_source=Fairfax+Free+Citizen+Digest&utm_campaign=28dfe61778-RSS_EMAIL_CAMPAIGN&utm_medium=email&utm_term=0_69cf25d58d-28dfe61778-159041773

[Ouderkirk]

C Edmund Wright is a poster here.....maybe you should contact him

[conservatism_IS_compassion]

I would also pass a law making dividends deductible from corporate income, from whatever source. Allow Apple to repatriate its billions made abroad, pay it out in dividends, and be satisfied with ordinary individual income tax revenues from that money. Win - win.

The there is the issue of getting to the virtuous (low rate) side of the Laffer Curve. I have a pet theory for accomplishing this:

• increase the nominal capital-gains tax rate by 10% of its value and,

• Cap the revenue of the capital-gains tax at 110% of its current value, with the excess to be rebated to the cap-gains taxpayers on a strict pro rata basis.

You will say, what excess will exist to be rebated? Aren’t we already on the wrong side of the Laffer Curve, and won’t the 10% increase in the rate actually reduce the revenue?

Yes, that would absolutely be the case - except for the effect of the rebate provision on the taxpayer who has paper gains which he can elect to realize. The taxpayer, aware of the rebate provision, would make the self-fulfilling prophecy that capital gains realizations would soar because if it did soar, the tax rate net of rebate would be much less than previously.

It is a mechanism whereby the market can take on the risk and gain the reward associated with tax policy. After a little experience with this proposed regime, the move could be made to slash the nominal cap gains tax rate down to, or below, the effective rate of the cap/rebate policy. This would be good policy because the cap gains tax is pernicious, and detrimental to revenue in the long run. It should actually be repealed.